Cheap sunshine deals available after recovery in Sterling

Holidaymakers booking a new year winter sun trip could grab a bargain due to the strengthening of the pound, according to new research.

A wide range of popular destinations are more affordable than in December 2016 because of favourable exchange rates for most long-haul holiday currencies, Post Office Travel Money said.

The biggest sterling growth of the 12 resorts analysed is in Punta Cana in the Dominican Republic, where UK tourists will have 14% more travel cash to spend compared with a year ago.

The US dollar has dipped in value and so have currencies linked to it, giving holidaymakers around 10% more cash on trips to the US, the Caribbean and Dubai.

But eurozone locations still offer the cheapest overall deals as the lower travel costs outweigh the weakening of the pound against the euro by 3%.

Paphos in Cyprus has the lowest prices for a one-week package holiday, followed by Tenerife and Lanzarote, both in the Canary Islands.

Andrew Brown of Post Office Travel Money said: "Bargain hunters will certainly find Europe cheapest for a new year break but they should bear in mind that the best January temperature they can expect is 21C (69.8F) .

"By comparison, temperatures soar to 27C (80.6F) in long-haul beach resorts, with the promise of longer sunshine hours as well.

"The downside is that flying further means higher airfares so it all depends what matters most: the cheapest holiday deal or more sunshine and extra cash in the pocket."

This is the growth of the pound against nine currencies in popular winter sun destinations compared with December 2016, according to Post Office Travel Money: